Utility Considers BPA Plan

By Courtney Sherwood, The Columbian, Vancouver, Wash.

Mar. 12–Who should Clark County’s electricity provider side with — other utilities that want millions of dollars now, or those that want to sue for possibly more?

It’s a question Clark Public Utilities commissioners will tackle at 9 a.m. Tuesday at 1200 Fort Vancouver Way, as they grapple with how to resolve a longtime dispute with the regional Bonneville Power Administration.

The issue, at its heart, is BPA’s interpretation of the Northwest Power Act of 1980, which says all Northwestern residential and small-farm consumers should have access to the region’s cheap hydropower, not just customers of voter-owned public utilities such as Clark. Because many for-profit utilities, such as Portland General Electric, generate power themselves at higher prices, BPA made payments to these for-profit utilities to lower their customers’ bills.

Clark Public Utilities was part of a consortium of utilities that sued and won in arguments that BPA’s payment plan, known as the residential exchange program, was unfair.

Following the May 2007 court ruling, BPA stopped distributing the monthly $28 million it had been paying to for-profit electric companies while it developed a new plan for how to share the hydropower revenue.

Now BPA wants to pay out much of that money — $336 million — to the region’s utilities, as it pulls together a new residential exchange program. But there are strings attached. Utilities that take the money now have to promise not to sue BPA about the program later.

Some say yes

Already Cowlitz Public Utility District has accepted the cash, about $15 million, and announced that it would send checks of about $65 to each of its residential customers.

Other utilities, including the Clatskanie People’s Utility District in Oregon and Grays Harbor Public Utility District in Washington, have rejected BPA’s offer and sued the nonprofit power broker over its latest plans.

Clark Public Utility’s share would be about $12.5 million now, with a possible second payment in October once a full accounting is available. The agency has not decided what it would do with the money.

Terry Mundorf, Clark’s power supply attorney, is reviewing BPA’s proposed agreement, which must be accepted or rejected by March 24.

“It’s a lot of money, but it’s not going to have a huge impact on rates if the commissioners decide to accept it,” said Mick Shutt, Clark Public Utilities spokesman.

Courtney Sherwood covers Clark Public Utilities. Reach her at courtney.sherwood@columbian.com or 360-735-4553.

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